Armature Not Deforming Mesh
Hi Misha welcome to Blender SE.  There's two things preventing seeing the deformations in your armature:


You have the manipulator set to 'Manipulate Centre Points' (see picture below).  That will prevent any rotations from happening in a chain of parented bones, who's pivots are all dependent on their parents' tails.  Uncheck this box:

Your armature modifier settings have all their deformations based on the Abdoman bone.  This means the Abdoman's vertex influences are determining the deformation of the entire model.  I suspect you don't actually want this, unless your gearing up for a more complicated modifier stack.  Just hit the 'X' next to the Abdoman bone to clear that out.



After that you should see that your model now deforms the way you intended.   Happy Blender-ing!